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Industry's Momentum Evident at Ace Spring Convention

February 22, 2013

While Ace CEO Ray Griffith addressed the crowd at the General Session of Ace’s Spring Convention and Exhibits, his last time doing so before his retirement in March, he pointed to the co-op’s future leaders as the reason for the industry’s prospected growth.

“America faces some difficult challenges but some interesting opportunities and it needs great leadership,” he said. “Just like America, Ace needs great leadership, and you have it.”

That theme of optimism in the future carried over into the rest of the show, held Feb. 21-23 at the Ernest N. Morial Convention Center in New Orleans, with other Ace executives and retailers as well as vendors mentioning the industry’s positive momentum.

Ace Chief Operating Officer and President John Venhuizen, who the company announced late last year would become Griffith’s successor at the end of March, is set to take the helm at a time when Ace retailers are experiencing growth across the board. The co-op reported a 3.6 percent increase in corporate revenue, a 3.6 percent same store sales increase and 159 new domestic stores at the end of 2012.

Moving forward, Venhuizen said his goal is to keep up the co-op’s momentum.

While today’s retailers face consolidation, pressure on customer traffic and the evolving retail landscape in a technological environment, Ace is positioning itself to help its retailers succeed with several corporate initiatives, he said.

One of those plans includes the company’s strategic long-term alliance with Valspar, announced earlier this year, and a continued focus on expanding Ace’s share of the paint market.

“Our Valspar alliance is already generating a 10 percent gross profit improvement for Ace retailers on our exclusive lineup of paint, and Clark+Kensington’s No. 1 rating in a leading consumer magazine will only build more sales momentum,” Venhuizen said.

Market attendees also were able to learn more about Ace’s other new programs, including staff training programs and a new business-to-business e-commerce site set to launch in early 2014.

Joe Turner, store manager at Nutter Hardware in Columbus, Ohio, said he is impressed with Ace’s strategic plan.

“We've already started implementing the training with our staff and become much more aggressive in making sure every customer and every transaction count,” he said.

Vendors at the convention also noticed many retailers are more willing to buy than what was suggested at previous markets.

Michael Majeski, special markets manager with Hoffmann Voger, which represents Five-Hour Energy and other impulse item brands, said he took many large orders from retailers.

“I haven’t seen the hesitation in buying that would be expected in a less than strong economy,” he said.

Curt Shaffer of Legacy Brand Products Inc. said he noticed a similar trend.

“We’ve seen a higher trend of a positive mood for store owners,” he said. “They seem to be in a good buying frame of mind.”